FATAL FURY 3 ACA NEOGEO’s gameplay and controls are similar to the original game’s. The Oversway System, which previously only had two planes, has been expanded to include a third plane. The player fights primarily on the main plane but can gain an advantage by crossing over to the sway lines of the background (LP+LK) or foreground (LK+HP).

After performing an attack in a sway plane or an Oversway Attack, a player’s character will return to the main plane. An Anti-Oversway Attack can counter an opponent in a Sway Plane. Alternatively, the player can avoid an attack by performing a “Quick Sway,” leaving the opponent open to a regular attack. Adjusting the height of the character’s jump, blocking an attack while in mid-air (Air Guard), and a new combo technique called Combination Arts allows the player to cancel a specific series (which varies between characters) of regular attacks from one to the other.

Each character has regular Special Moves and Super Special Moves that can only be used when the life gauge is flashing red. Furthermore, each character has a “Hidden Ability,” a more powerful version of a Super Special Move that can only be used in extreme circumstances. The character’s Hidden Ability will activate once every 1024 times when the player enters the command for the character’s Super Special Move. A hidden ability can also activate “Super Mode” before a game by using a secret code. When the player’s life bar turns red, they must enter a specific command to activate the Hidden Ability. In contrast to Super Special Moves, a Hidden Ability can only be used once per round.

The player’s first foe can be chosen from four options (Joe, Mary, Bob, and Franco). If the player has defeated the first four opponents in the game, the fifth and final opponent will be Ryuji Yamazaki in a one-round plot-based match. The player battles Mai, Andy, Hon-Fu, Sokaku, Terry, and Geese before facing Yamazaki in another full match. Depending on their overall performance, the player will face either Yamazaki or the Jin twins, Chon Shu first and then Chon Rei.